Super for deposits would further fuel house prices
Just as the housing market calms down just a little bit, watch some politicians issue a spate of crazy policies to juice the market and push up prices again.
This time it’s One Nation saying that Australians should be able to access their superannuation before retirement more easily, including as a deposit on a home.
If this sounds familiar, then you’re probably thinking about the Coalition’s policy that it took to the past two elections, which would have allowed first-home buyers to withdraw their super to put a deposit on a home.
These are terrible ideas for a host of reasons, not least because they would just push up house prices and make housing less affordable. But that might be exactly the point.
There has been a group of people talking loudly in the media about how terrible the recent, very modest, fall in house prices has been. Since the changes to negative gearing and capital gains tax were announced at the May budget, according to Cotality, prices have dropped nationally by 1.9 per cent.
This “drop” is barely more than a flattening of house prices, because it comes after 25 years of rapid growth that have pushed the........
